The efficient
price floor requires that the VIP's downstream service price be no lower than the sum of the direct cost of providing the downstream service and the opportunity cost (measured in terms of the contribution foregone from the sale of the upstream input), with possible adjustments for incentive effects.
The first example, palm oil extraction in Cameroon, shows how trade restrictions and a domestic
price floor have allowed inefficient large-scale production by parastatals to persist along with lower cost artisanal production.
The Venezuelan Minister of Energy, Ali Rodriguez, said on July 25 he hoped the summit would adopt a
price floor and ceiling so that crude oil prices would only fluctuate within an agreed band.
"When demand for the product is low, there's a
price floor and consumers can't get the product as cheaply as they otherwise would.
There are two government prices: the target price, [P.sup.T], guaranteed to farmers, and the loan rate, [P.sup.L], which is a
price floor defended by government stock purchases.
It appears there is an ongoing silent battle within the ruling Coalition for Democratic Change or CDC government as it relates to the implementation of the Liberia's Telecommunication Authority's or LTA's proposed
price floor, which should have kicked off on April 15, this year.
Madrid: Fitch Ratings says Spain's 9GW new renewable energy tendered capacity to be commissioned by end-2019 will face merchant risk as the renewable projects will mostly operate under merchant conditions with regulatory support being limited to the implicit pool
price floor.
ISLAMABAD -- Pakistan Telecommunication Authority (PTA) has sought consultation from all telecom users, stakeholders and general public, asking them to submit their views on
price floor regime for mobile broadband services.
A
price floor would not affect the image of the prestigious malt brands that the SWA purport to defend.
As such, 30 percent of the mid-range of estimated arrears would amount to $5.7 billion, which would help ease liquidity to the extent it is not used to deleverage, in our view." The report added: "We think an oil
price floor and potentially higher oil prices on the back of the Organization of the Petroleum Exporting Countries (OPEC) deal could ease Saudi Arabia fiscal strains, slow down the drain in Fx reserves and support plans for external debt issuance." The research team said that the deal also confirms its view that energy policy is turning less aggressive to ease the ongoing macro adjustment.